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Thursday 30 March 2017

Trends and Decomposition of Agricultural Growth and Crop Output in Gujarat: Recent Evidence

Author
Itishree Pattnaik and Amita Shah

Abstract: The growth story of Gujarat’s agriculture (with around 10 per cent growth rate in the recent phase) has received considerable attention and is often hailed as a role model for other states to follow. In this context, it is therefore important to examine the major factors contributing to this high growth performance. This paper tries to identify these factors by undertaking a decomposition analysis with reference to price, area, cropping pattern and yield. The decomposition analysis suggests that the individual effect of price alone has increased over time along with a reduction in the yield effect. The price-area interaction effect which was negative during the 1990s turned out to be positive in the recent phase. Similarly, the interaction of yield and price has become positive in the recent phase. This implies most of the crops for which there was substantial price increase show favourable change in yield and area. increase, shows favourable changes in yield and area.
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